Deliverability Requirements for Capacity Imports

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1 Deliverability Requirements for Capacity Imports Zachary T. Smith Supervisor, ICAP Market Operations ICAPWG October 11, 2017, Rensselaer, NY

2 Minimum deliverability requirements for External Capacity in the NYISO ICAP market* *For External Capacity over UDRs, please see the presentation given to ICAPWG on September 18,

3 Existing Tariff MST Provisions Addressing the Applicable External Control Area External Generators, External System Resources, and Control Area System Resources qualify as Installed Capacity Suppliers if they demonstrate to the satisfaction of the NYISO that the Installed Capacity Equivalent of their Unforced Capacity is deliverable to the NYCA or, in the case of an entity using a UDR to meet a Locational Minimum Installed Capacity Requirement, to the NYCA interface associated with that UDR transmission facility and will not be recalled or curtailed by an External Control Area to satisfy its own Control Area Loads, or, in the case of Control Area System Resources, if they demonstrate that the External Control Area will afford the NYCA Load the same curtailment priority that they afford their own Control Area Native Load Customers MST is also referenced in the ICAP Manual 3

4 NYISO ICAP Manual, Section (v6.37) Installed Capacity Suppliers are required to qualify external resources to be eligible capacity Qualification requirements include: Name and location of the Resources Assurance that the External Control Area in which the Resource is located either: Will not recall or curtail, for the purposes of satisfying its own Control Area Loads, exports from that External Control Area to the NYCA of an amount of Energy equal to the Installed Capacity Equivalent of the amount of Unforced Capacity that Resource is supplying to the NYCA; or In the case of Control Area System Resources, will afford NYCA Load the same pro-rata curtailment priority that it affords its own Control Area Load; Documentation of a DMNC test, or its equivalent Submission of Operating Data for the prior 24 months Documentation which satisfies the Maintenance Scheduling Requirements Expected return dates from full or partial outages. 4

5 How deliverability of External Resources is currently evaluated. 5

6 Imports for ISO-NE and IESO ISO-NE No additional documentation required. ISO-NE market is similar to NY in that energy transactions scheduled from capacity backed resources are considered firm IESO No additional documentation required. IESO market is similar to NY in that energy transactions scheduled from capacity backed resources are considered firm Each resource seeking to import capacity from IESO must additionally provide documentation from IESO that IESO will not count on it to meet capacity needs 6

7 PJM and HQ PJM Each resource seeking to import capacity from PJM must provide documentation that firm transmission service exists between PJM and NY HQ Each resource seeking to import capacity from HQ must provide documentation that Firm Transmission Service exists between HQ and NY 7

8 Upcoming documentation requirement changes for capacity imports from PJM starting 5/1/

9 Changes for Resources in PJM starting 5/1/2018 In addition to the documentation at registration, documentation proving that resources with capacity awards have firm transmission service for the month For all capacity import obligations, the ICAP Supplier must provide documentation to the NYISO on the day of the Spot Market Auction results are posted The posting date for each month is on the ICAP Event Calendar The documentation deadline would be the same for all imports, regardless of whether it is a certified Strip or Monthly award or bilateral transaction, or a Spot Auction award Same date will enable the NYISO to verify that the firm service is available for all of the imports; i.e., it is not secured by a resource one day and returned the next day to be attributed to a different importing resource ICAP Manual revisions will be made to support this change in procedure ICAP Suppliers that do not provide documentation of firm transmission service by the deadline will be subject to ICAP penalties and deficiency charges 9

10 Next Steps Return to a future ICAPWG with ICAP Manual Revisions Continue evaluation of deliverability requirements for all interfaces 10

11 The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefits to consumers by: Maintaining and enhancing regional reliability Operating open, fair and competitive wholesale electricity markets Planning the power system for the future Providing factual information to policy makers, stakeholders and investors in the power system 11

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